SINGLE TOUCH PAYROLL

Single Touch Payroll (STP)

is an Australian Government initiative which involves reporting payroll information each time you pay your employee’s. This information includes:

• salaries and wages

• pay as you go (PAYG) withholding

• superannuation

STP is now a mandatory obligation for all employers, including Micro-Employers & Small Employers with closely held payees (such as family members or directors/shareholders of a company).

Single Touch Payroll works by sending the payroll information from an STP-enabled software directly to the ATO. This reporting must happen each time a payment is made to an employee. Furthermore, at the end of the financial year, a declaration must be made that you have completed all reporting and finalised your STP data. As part of our services, Payrite takes care of these obligations on behalf of our clients.

STP Phase 2.

Included in the 2019-2020 Budget, the ATO announced that there would be an expansion of the data collected through STP. The start date for STP Phase 2 reporting will be 1st January 2022.

• reporting child support garnishee and deduction amounts voluntarily through STP

• incorporating the reason for an employee ceasing employment to reduce the need for separation certificates

• removing the need to send tax file number and withholding declaration information to the ATO – this will now be captured in the employment conditions section of the STP report

• better defining the components that make up gross income that will

  • make it easier for employers to understand their obligations

  • help employees understand their earnings and help them with their interactions with Services Australia

  • ensure consistency of reporting across the various income types.

• reporting employee payments by income type